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September 02, 2014
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on its 2014 field activities and plans to advance its 100 percent-owned Chidliak diamond project (“Chidliak” or the “Project”). Chidliak is located 120 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The primary goal of Peregrine’s 2014 and 2015 Chidliak work programs is to confirm a resource base in three kimberlites with economic potential, CH-6, CH-7 and CH-44. This resource base could form the foundation of an independent, NI 43-101-compliant Preliminary Economic Assessment (“PEA”) in 2016.
This season a total of 3,305 metres of core drilling was completed at CH-6, CH-7 and CH-44. The drill program was designed to allow conversion of kimberlite tonnage currently classified as a target for further exploration (“TFFE”) into the Inferred Resource category upon completion of the 2015 bulk sampling program. A total of 994 metres of small diameter reverse circulation (“RC”) drilling designed to constrain overburden depth and obtain kimberlite contacts at surface has also been completed to date on the three kimberlite bodies.
Exploration activities are ongoing and are focussed on the Southern Priority Area. A new kimberlite, CH-68, has been discovered in this area by prospecting.
Preparations for the 2015 bulk sample program are nearing completion and mobilization of the drill rig and ancillary equipment to Iqaluit has commenced. Assuming successful closure of the current rights offering, bulk sampling by large diameter (up to 26 inch, 66 cm) RC drilling will commence in 2015 on CH-6, CH-7 and CH-44 to confirm continuity of diamond grade throughout the bodies and to obtain parcels of diamonds for valuation. The bulk sampling results, together with the work being completed in 2014, will then be used to estimate the tonnage and grade for each of the pipes. A new resource statement for CH-6 would be prepared and If diamond valuation results warrant, maiden resource statements for CH-7 and CH-44 will be prepared.
Mr. Eric Friedland, Peregrine’s Chairman and CEO stated “Since we received the maiden resource statement at CH-6, Peregrine has been carefully analyzing how to advance Chidliak in the most efficient and effective way possible. Based on this work we have made the strategic decision to focus on proving up resources that will support the delivery of a PEA in 2016. CH-6 potentially has some of the highest rock value in the world for a diamond deposit and that resource, combined with potential resources at CH-7 and CH-44, would provide the basis for the completion of the PEA. In addition, we will continue to evaluate other known kimberlites with economic potential as well as high priority exploration targets.”
2014 CHIDLIAK RESOURCE DEFINITION UPDATE
The majority of the Company’s exploration efforts in 2014 are being devoted to advancing CH-6, CH-7 and CH-44 through the PEA stage. The ongoing work program includes the following activities:
Until the results from the 2014 resource definition drilling are integrated into the existing models for CH-6, CH-7 and CH-44, it is not possible to quantify the extent that tonnage estimates could change. Peregrine believes that the integration of the 2014 drill data into the geological models will result in increases in the tonnage estimates at each of CH-6, CH-7 and CH-44.
|Drill Hole||Kimberlite||Azimuth||Inclination from Horizontal||Overburden Intercept (m)||Kimberlite Intercepts (m)||End of Hole (m)|
Click here for a map showing the collar locations for all diamond drilling completed to date in 2014.
2014 PREPARATION FOR PRELIMINARY ECONOMIC ASSESSMENT
Work in 2014 in support of a 2016 Preliminary Economic Assessment included:
2015 CHIDLIAK BULK SAMPLE PREPARATION UPDATE
Work in preparation for a 2015 bulk sampling program by large diameter RC drilling is nearing completion and mobilisation of the drill rig and ancillary equipment to Iqaluit has commenced. Work completed this summer includes:
Click here for photos of the bulk sample preparations.
2014 CHIDLIAK NEW TARGET EXPLORATION UPDATE
The majority of the Company’s new target exploration efforts in 2014 is focussed in the Southern Priority Area, an area that includes CH-6, CH-7 and CH-44. Exploration work is underway in two principle areas this summer, the CH-6/String of Pearls area and at CH-46. In addition, one new kimberlite was discovered, CH-68.
High-interest kimberlite float was discovered in Area B in 2012. Area B is located approximately 15 kilometres east of CH-6 and it remains a high priority exploration area for the Company. Due to the focus this season on resource delineation at CH-6, CH-7 and CH-44 in preparation for a PEA, the drilling of geophysical targets in this area has been deferred.
CH-6, CH-7 and CH-44 SUMMARY
On May 7, 2014, Peregrine reported an Inferred Resource of 7.47 million carats of diamonds in 2.89 million tonnes of kimberlite at a grade of 2.58 carats per tonne for the CH-6 kimberlite. See “2014 Technical Report for the Chidliak Project, 66° 21′ 43″ W, 64° 28′ 26″ N, Baffin Region, Nunavut” for information on the CH-6 resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability. An average diamond value ranging from US$163 to US$236 per carat was determined for a 1,013 carat parcel of commercial-size diamonds recovered from CH-6 in 2013. In addition, an estimated 2.60 to 3.47 million tonnes of kimberlite at CH-6 above 250 metres depth is classified as a TFFE. Tonnage estimates ranging from 2.75 to 3.97 and 1.16 to 2.05 million tonnes of TFFE have also been reported for the CH-7 and CH-44 kimberlites respectively. A 47 tonne mini-bulk sample collected from CH-7 returned a grade of 1.04 carats per tonne and caustic fusion diamond results from 535 kg of drill core from CH-44 are encouraging. The TFFE estimates that have been identified at CH-6, CH-7 and CH-44 are conceptual in nature. There has currently been insufficient exploration to convert the TFFE to a mineral resource on those targets and it is uncertain if further exploration will result in the TFFE estimates being converted to a mineral resource.
Mr. David Farrow and Ms. Darrell Farrow of Geostrat Consulting Services Inc., both Professional Geologists and independent, external Qualified Persons and consultants to Peregrine, prepared the CH-6 Inferred Resource estimate and reviewed and verified the CH-6, CH-7 and CH-44 tonnage estimates. Dr. Herman Grütter, Professional Geologist and Peregrine’s Program Manager, Chidliak Exploration, is responsible for the 2014 Chidliak exploration program.
Mr. Farrow, Ms. Farrow and Dr. Grütter have reviewed this release and approve of its contents.
ABOUT PEREGRINE DIAMONDS
Peregrine is a diamond exploration and development company focused on Canada’s North. The Company has discovered two new diamond districts in Nunavut, Nanuq in 2007, and Chidliak in 2008. At its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, 68 kimberlites have been discovered to date with eight being potentially economic. An Inferred Mineral Resource of 7.47 million carats in 2.89 million tonnes of kimberlite at a grade of 2.58 carats per tonne has been defined for a portion of the CH-6 kimberlite. A program of resource delineation drilling at the CH-6, CH-7 and CH-44 kimberlites was initiated in July, 2014. In April 2013, Peregrine collected a bulk sample weighing 404.2 dry tonnes from CH-6. This sample returned a grade of 2.58 carats per tonne for diamonds larger than the 1.18 mm sieve size. An independent diamond valuation of the resulting 1,013 carat parcel of diamonds returned an average market price of US$213 per carat and modelled prices that ranged from a minimum of US$162 per carat to a high of US$236 per carat with a base model price of US$188 per carat. The 2014 exploration program is ongoing and planning is now underway for an important 2015 resource definition program that is designed to advance Chidliak towards the feasibility stage.
At its 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 23 kilometres from the Diavik Diamond Mine, the nine hectare 72.1%-owned DO-27 kimberlite hosts a NI 43-101 compliant Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and the Northwest Territories and through comprehensive evaluation of its extensive and proprietary diamond exploration databases, is working towards discovering additional new diamond districts in North America. A key asset being utilized in Peregrine’s search for a new Canadian diamond district is a proprietary database acquired from BHP Billiton that contains data from approximately 38,000 kimberlite indicator mineral samples covering approximately three million square kilometres of Canada.
For further information on Peregrine Diamonds, please visit www.pdiam.com or contact Mr. Eric Friedland, CEO, Mr. Brooke Clements, President, Mr. Tom Peregoodoff, Executive VP, Business Development, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at [email protected].
For information on data verification, exploration information and resource estimation procedures see the technical reports entitled, “2014 Technical Report for the Chidliak Project, 66° 21′ 43″ W, 64° 28′ 26″ N Baffin Region, Nunavut”, and “Peregrine Diamonds Ltd. Lac de Gras Project Northwest Territories, Canada NI 43-101 Technical Report” both of which are available on SEDAR and the Company’s website.
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